Lagos is known for its rich diversity in human capital as well as its creativity and the peculiar hustle and bustle Lifestyle.
Lagos State, Nigeria is a state with an average of 20million people almost the same as Germany 19million, Thailand 20million and Turkey 18million as of 2022. The percentage of this population as workforce and senior citizens is about 65% workforce age group and 35% senior citizens respectively. Unfortunately, about 18.75% of residents are taxpayers within the state. However, Lagos State is still one of the states with the highest IGR (internally Generated Revenue) within Nigeria with an average IGR of 45 billion Naira as of December 2021.
As an entrepreneur, you must make an informed decision based on some of the information above and many more. Decision on where to locate your factory if you are into production such as Shoemaking, printing, textiles or paint to name a few or a decision on where to locate your outlet if you are into services such as dry cleaning, food restaurant, electrical repairs and so on…… considering factors such as infrastructure, proximity to sales point or customers as well as taxes based on our earlier information will help you make an informed decision.
The ease of doing business in Lagos State has generated so much controversy over the time with so many state taxes from its Agency LIRS (Lagos Inland Revenue Service) and its counterpart at the federal level FIRS (Federal Inland Revenue Service) Some say there is double taxation while some say the tax return process is ineffective. However, if you are into hospitality services such as hoteliers, it will interest you that there are various taxes you have to pay such as beverage tax, sugar tax on soft drinks, food and consumption tax and the radio and television tax.
Nonetheless, tapping into the human capital that exists in Lagos can bring fortune to any erudite entrepreneur that knows his target market audience very well and has a viable visibility study and strategy. Take for instance. An entrepreneur that is into restaurants in a CBD (Central Business District) such as Ikeja, Alausa or Marina, Broad Street has positioned her services strategically for the working-class target market. The only concern is to ensure the quality is good and consistent to deliver and good ambience. A little advert will place the business out. Likewise, an entrepreneur that is into stationary and is in the Yaba environs of Lagos state is also strategically located amidst scholars. Knowing fully well that Yabba houses three big reputable tertiary institutions in Nigeria. Which are Yaba Tech, Uni Lag and Fed. College of Science. Hence the influx of students and academia in the region cannot be overemphasized.
In conclusion, harnessing the high population while marketing your product or introducing your services can be an edge in market penetration. However, be cautious of the ease of doing business as regards the state laws and taxes when considering a production factory and finally bear in mind also the location of your target audience.
Till we meet again, I remain my humble self.
Motunrayo Awomolo.
(M.A.)
Emotional intelligence